Ha ha - oh xflat - you're so cynical! Which is why you're no doubt right on target...
Trying to find off-the-shelf software that looks at skew just the way you do seems a long shot. Probably your best bet is to get an Excel option...
For a math-free common-sense explanation of BS see http://masteroptions.com/?p=3
Theoretically, all options on Ford should should trade at the same IV. After all, they all have the same underlying, which has a single...
I created and posted a 45-minute video that explains IV and the logic behind option pricing at http://masteroptions.com/?p=3 It's free and if you...
This looks like a neat site with lotsa cool stuff. But I'm curious Ron - your IV charts are of something you call "IV30". There's also IV60,...
Bismarck also talked about the psychic/emotional boost he got from just wrapping his arms around a tree. Hence the term "Tree-hugger." Honest.
As you say, pretty much everything goes down in a deflationary depression. You might want to look at some of the January 2012 puts, which would...
Droid, you are doing what beginners do - trying to find some "strategy" or combination of options that is better than other "strategies." Some...
I agree with this. The threshold of a professional-level understanding of options is when you know beyond needing to think about it that a put is...
Predicts it, precedes it - either choice of words is fine with me. Most accurately, low implied volatility - which equals high complacency and...
That's the theory. But in reality, implied volatility is more reactive in nature than it is predictive. It's just like hurricane insurance in...
Not to be argumentative Nazzdack - but it's you who's raised the question - namely, "What conclusions can be drawn if you see big volume in an...
When you see a transaction take place, what makes you think you know if a MM was one of the parties? The buyer might have been Sam the Sham in...
Let's say there's open interest of 1,000 in an option. One day out of nowhere there is huge volume and the open interest jumps to 101,000....
Ha ha - leave it to you to keep me honest Maw :) What I meant - and should have clearly stated - is that absent interest rate and dividend...
How do you figure that? If the market is .60 bid at .70, and someone puts in a bid of .65 for 1 contract, and that bid is hit, the market goes...
If all your options have the same expiration date, then if you're long vega, you will be short theta.
Long the back months, short the front months.
What would be the point of doing that? If the market is .60 bid at .70, and you want to pay .65 for 50 contracts, it seems to me your best bet is...
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